Turnaround Management Strategy and Profitability in the Distressed Nigerian Textile Manufacturing Industry

Abstract

The study was designed to examine the relationship between turnaround management strategy and profitability in the distressed Nigerian Textile Manufacturing Industry. The industry that in the past employed over 160,00 workers directly and millions indirectly in the cotton farms can now hardly employ 24,000 workers. The financial assistance from the federal government through the cotton textile garment scheme only helps to service its losses and not to restore profitability. A turnaround management strategy becomes imperative in a situation where business performance is persistently below some minimally allowable levels, and a major starting point is for the industry to audit its skills and other resources through SWOT. The exploratory research design was used for the study, and it was found that turnaround management strategy has positive relationship with profitability. Based on the result, it was suggested that board and management in a turnaround situation must ensure best management practices to enhance public confidence.